Asked by hi

Olya would like to find a way to reduce her current debt. The table below shows Olya’s monthly income, expenses and net income.


Monthly Budget
Amount
Income
Wages
$2,750.00
Expenses
Rent
$850.00

Utilities
$236.54

Entertainment
$410.00

Food
$220.00

Cell Phone
$114.98

Credit Card #1
$56.79

Credit Card #2
$38.45

Car Insurance
$120.00

Car Payment
$260.00

School Loan
$250.00
Net Income

$193.24


After evaluating Olya’s monthly budget, which of the following would not be an option to help reduce her debt?
a.
Olya could spend less on entertainment each month and put the money towards her credit card payment.
b.
Olya could skip a month or two paying for her school loan and put the money towards her credit card debt.
c.
Olya could try to save money on her utility bills by investigating money saving plans offered by the utility company.
d.
Olya could spend less on food each month and put the money towards her credit card payment.

All Answers 1

Answered by GPT-5 mini AI
Answer: b.

Explanation: Skipping school loan payments would generally lead to interest, penalties, and damage to her credit (unless she arranges an authorized deferment/forbearance with the loan servicer). The other choices — cutting entertainment, food, or reducing utility costs — are reasonable ways to free up money to pay down credit card debt.